| capacity |
the maximum amount that can be retained on a risk; the legal status of persons to enter into a contract |
|
| cash flow |
(Fund flow, net cash flow)
Cash flow is the change in net cash and loans between the opening day of a period and the closing day. The period is normally one month or one year.
[Net cash flow = Opening net assets – Closing net assets + Retained profit + Proceeds from sale of new equity = Opening loans – Closing loans where loans are total loans less total cash] |
|
| catastrophe |
n event causing losses of insured property above a specific
monetary limit and affecting a substantial number of policyholders and
insurers |
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| client |
Client means a specific person or group of persons, excluding the general public, who is or may become the subject to whom a financial service is extended. |
|
| common law |
the body of law developed as a result of custom and judicial decisions, as distinct from the law laid down by legislative assemblies |
|
| compensate |
to pay for something lost or damaged |
|
| complaint |
Complaint means a complaint relating to a financial service rendered by a FSP to the complainant after the date of commencement of the Act in which it is alleged that the FSP has contravened or failed to comply with a provision of the FAIS Act, and as a result thereof, the complainant has suffered or is likely to suffer financial damage. The complaint could also be that the FSP has willfully or negligently rendered a financial service to the complainant which has caused damage to the complainant |
|
| compliance |
readiness to conform or agree to do something |
|
| compliance officer |
The officer appointed by an FSP to ensure compliance with the Act. |
|
| comprehensive policy |
a policy covering a wide variety of perils |
|
| consent |
to agree |
|
| consequence |
something that logically or naturally follows from an action or condition; the relation of a result to its cause |
|
| consequential loss |
a loss directly arising from another loss. The term is used to describe the class of business also known as loss of profits or business interruption insurance. |
|
| contribution |
Contribution is the (first level of) profit remaining after direct and indirect variable costs of goods sold have been deducted from sales revenue.
[Contribution = Sales – Variable costs of sales] |
|
| cost of debt rate, kd% |
(Cd%, Rb%)
The cost of debt rate is the after tax rate of interest the business has to pay for its borrowed money.
[Kd% = Interest rate (1 – Tax rate)] |
|
| cost of debt, kd |
(Cd)
The cost of debt is the after tax interest the business has to pay to borrow money.
[Kd = Interest rate (1 – Tax rate) Loans] |
|
| cost of equity rate, ke% |
(Ce% ; Ke)
Cost of equity is the rate shareholders could get in share price appreciation plus dividends, in other companies of equal risk.
[Ke% = RfR + Ri (RP)]
RfR is the risk-free rate of return.
Ri is beta, the risk index.
RP is a risk premium, the difference between the RfR and the average rate of return on the stock exchange. |
|
| cost of equity, ke |
(Ce. , Opening equity)
Cost of equity is the amount shareholders could get in share price appreciation plus dividends in other companies of equal risk.
[Ke = Ke%] |
|
| credit system |
Each financial adviser needs to obtain a certain number of credits depending on the type of advice he provides. Credits refer to credits on the National Qualifications Framework (NQF) and are prescribed on a particular level. |
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